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The company cannot assure you that the proposed manufacturing units for dyeing of fabrics and the unit for manufacturing bags will become operational as scheduled, or at all, or operate as efficiently as planned. If the company is unable to commission its new manufacturing unit in a timely manner or without cost overruns, it may adversely affect its business, results of operations and financial condition.
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As on date the company has not obtained any of the approvals, clearances and permissions as may be required from the relevant authorities for the proposed manufacturing units. In the event the company is unable to obtain such approvals and permits, its business, results of operations, cash flows and financial condition could be adversely affected.
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Its expansion into new product categories and an increase in the number of products offered by it may expose the company to new challenges and more risks.
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The Company has a very limited operating history of dyeing operations, which will make it difficult for the investors to evaluate its historical performance or future prospects.
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The company cannot assure that its shall be able to utilize its proposed manufacturing units to their full capacity or up to an optimum capacity, and non-utilisation of the same may lead to loss of profits or can result in losses, and may adversely affect its business, results of operations and financial condition.
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There can be no assurance that the objects of the Issue will be achieved within the time frame anticipated or at all, or that the deployment of the Net Proceeds in the manner intended by the company will result in any increase in the value of your investment. Further, the plan for deployment of the Net Proceeds has not been appraised by any bank or financial institution.
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The Company is yet to place orders for 100% of the plant and machinery. Any delay in placing orders or procurement of such plant and machinery, may further delay the schedule of implementation and increase the cost of commissioning the manufacturing units.
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The company highly depends on its Subsidiary, IGK Technical Textiles LLP for weaving, coating, sizing and embossing of specialized technical textile. Its inability to undertake the said operations in a timely manner, could adversely affect its operations, financial condition and/or profitability.
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The company depends on a few customers of its products, for a significant portion of the company`s revenue, and any decrease in revenues or sales from any one of its key customers may adversely affect the company`s business and results of operations.
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The company highly depends on its raw materials and a few key suppliers who help it procure the same. In the event the company is unable to procure adequate amounts of raw materials, at competitive prices its business, results of operations and financial condition may be adversely affected.
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The company conduct its business activities on a purchase order basis and therefore, have not entered into long-term agreements with its customers.
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The company generate its major portion of sales from its operations in certain geographical regions. Any adverse developments affecting its operations in these regions could have an adverse impact on the company revenue and results of operations.
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There are outstanding litigations involving the Company which, if determined adversely, may adversely affect its business and financial condition.
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Its continued operations are critical to the company business and any shutdown of its manufacturing unit may adversely affect the company`s business, results of operations and financial condition.
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Thw Company does not have long-term agreement with suppliers for supply of raw material. Its inability to obtain raw material in a timely manner, in sufficient quantities could adversely affect its operations, financial condition and/or profitability.
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Failure to comply with the conditions applicable under Technology Upgradation Fund Scheme ("TUFS"), Amended Technology Upgradation Fund Scheme ("ATUFS") and Gujarat Textile Policy, 2012 being availed by it or withdrawal of the Schemes by the Government may render the Company ineligible for interest and capital subsidies.
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Any failure in its quality control processes may adversely affect the company business, results of operations and financial condition. The company may face product liability claims and legal proceedings if the quality of its products does not meet its customers` expectations.
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If the company is unable to anticipate and respond to changes in fashion trends and changing customer preferences in a timely and effective manner, the company fail to maintain its reputation, brand value or increase the market for its products, the demand for the company products may decline.
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Some of the raw materials that the company use are inflammable in nature. While its take adequate care and follow all relevant safety measures, there is a risk of fire and other accidents, at its manufacturing unit and warehouses. Any accidents is likely to result in loss of property of the Company and/or disruption in the manufacturing processes which may have a material adverse effect on its results of operations, cash flows and financial condition.
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Any delays and/or defaults in customer payments could result in increase of working capital investment and/or reduction of the Company`s profits, thereby affecting its operation and financial condition.
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Its inability to effectively manage its growth or to successfully implement the company`s business plan and growth strategy could adversely affect its business, results of operations and financial condition.
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The Company does not have any documentary evidence for experience of some of its Directors.
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The Company requires significant amount of working capital for a continuing growth. Its inability to meet the company working capital requirements may adversely affect its results of operations.
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Its application for renewal of certain licenses, approvals and registrations, which are required for the Company`s operations and business, are pending before the relevant authorities. Not receiving these licenses, approvals and registrations in a timely manner or at all may lead to interruption of the Company`s operations.
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The company is dependent on information technology systems in carrying out its business activities and it forms an integral part of the company`s business. Further, if the company is unable to adapt to technological changes and successfully implement new technologies or if its face failure of the company information technology systems, its may not be able to compete effectively which may result in higher costs and would adversely affect its business and results of operations.
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The company is subject to risks associated with rejection of its products consequential to defects, which could generate adverse publicity or adversely affect its business, results of operations or financial condition.
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In the past, there have been instances of delays in filing of certain forms which were required to be filed as per the reporting requirements under the Companies Act, 2013 to RoC.
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If the Company is unable to protect its intellectual property, or if the Company infringes on the intellectual property rights of others, its business may be adversely affected.
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The company is dependent on third party transportation providers for delivery of raw materials to it from the company suppliers and delivery of its products to the company`s customers. Any failure on part of such service providers to meet their obligations could adversely affect its business, financial condition and results of operation.
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Its entire business operations are based out of a single manufacturing unit at Surat. Further, its manufacturing unit, the company warehouses, godowns and all its facilities are currently located in one geographical area. The loss of, or shutdown of, its operations at this manufacturing or any disruption in the operation of its warehouses will adversely affect the company`s business, financial condition and results of operations.
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If the company is unable to identify customer demand accurately and maintain an optimal level of inventory proportionately, its business, results of operations and financial condition may be adversely affected.
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The company has significant power requirements for continuous running of its factories. Any disruption to the company operations on account of interruption in power supply or any irregular or significant hike in power tariffs may have an effect on its business, results of operations and financial condition.
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Its industry is competitive and the company`s inability to compete effectively may adversely affect its business, results of operations, financial condition and cash flows.
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Its Promoters, Directors and Key Managerial Personnel have interests in the Company other than reimbursement of expenses incurred or normal remuneration or benefits.
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Its Promoters and members of the Promoter Group have significant control over the Company and have the ability to direct its business and affairs; their interests may conflict with your interests as a shareholder.
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The average cost of acquisition of Equity Shares held by its Promoters could be lower than the Issue Price.
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Its future fund requirements, in the form of further issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.
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The company has in past entered into related party transactions and its may continue to do so in the future.
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Its Promoters and members of the company`s Promoter Group have extended personal guarantees with respect to various loan facilities availed by the Company. Revocation of any or all of these personal guarantees may adversely affect its business operations and financial condition.
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Its agreements with lenders for financial arrangements contain restrictive covenants for certain activities and if the company is unable to get their approval, it might restrict its scope of activities and impede the company growth plans.
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The Company has experienced negative cash flow in the past and may continue to do so in the future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.
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In addition to its existing indebtedness for the company existing operations, its may incur further indebtedness during the course of business. Its cannot assure that the company would be able to service its existing and/ or additional indebtedness.
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The Company has extended corporate guarantee with respect to loan facilities availed by its Subsidiary, IGK Technical Textiles LLP. Any defaults committed by its Subsidiary or invocation of the guarantee extended by the Company may adversely affect its business operations and financial condition.
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Its Subsidiary and the company Associate may have conflicts of interest as they are engaged in similar business and may compete with it.
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Any conflict of interest which may occur between its business and any other similar business activities pursued by its Promoters could have a material adverse effect on the company`s business and results of operations.
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The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further, the company has not identified any alternate source of financing the `Objects of the Issue`. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.
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Its success largely depends upon the knowledge and experience of the company Promoters, Directors, and its Key Managerial Personnel. Loss of any of its Directors and key managerial personnel or its ability to attract and retain them could adversely affect its business, operations and financial condition.
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The company may face difficulties in implementing its strategies including its expansion and diversification plans of entering new geographical areas, development and commercialization of new products.
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The deployment of funds raised through this Issue shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.
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Any variation in the utilisation of the Net Proceeds or in the terms of any contract as disclosed in this Red Herring Prospectus would be subject to certain compliance requirements, including prior shareholders` approval.
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The requirement of funds in relation to the objects of the Issue has not been appraised.
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Its inability to procure and/or maintain adequate insurance cover in connection with its business may adversely affect the company operations and profitability.
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Its ability to pay dividends in the future may be affected by any material adverse effect on its future earnings, financial condition or cash flows.
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Increased losses due to fraud, employee negligence, theft or similar incidents may have an adverse impact on the company.
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The company has not independently verified certain data in this Red Herring Prospectus.
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The requirements of being a listed company may strain its resources.
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The Equity Shares have never been publicly traded and the Issue may not result in an active or liquid market for the Equity Shares.
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There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the SME Platform of National Stock Exchange of India Limited in a timely manner or at all.
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There is no existing market for its Equity Shares, and the company does not know if one will develop to provide you with adequate liquidity. Further, an active trading market for the Equity Shares may not develop and the price of the Equity Shares may be volatile.
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The price of the Equity Shares may be highly volatile after the Issue.
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You will not be able to sell immediately on the Stock Exchanges any of the Equity Shares you purchase in the Issue.
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There are restrictions on daily movements in the trading price of the Equity Shares, which may adversely affect a shareholder`s ability to sell Equity Shares or the price at which Equity Shares can be sold at a particular point in time.
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The price of the Equity Shares may be volatile, which could result in substantial losses for investors acquiring the Equity Shares in the Issue.
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Any future issuance of Equity Shares, or convertible securities or other equity-linked securities by the Company may dilute your shareholding and any sale of Equity Shares by its Promoter or members of the company Promoter Group may adversely affect the trading price of the Equity Shares.
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Sale of Equity Shares by its Promoter or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
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Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
